HB5285 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5285

Introduced 01/25/06, by Rep. Rosemary Mulligan

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new

Amends the Illinois Income Tax Act. Creates a credit equal to 5% of the cost of motor fuel purchased in the State by the taxpayer during the taxable year for the operation of a commercial vehicle that has 2 or more axles. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 216 as follows:

(35 ILCS 5/216 new)

Sec. 216. Credit for the purchase of motor fuel for commercial vehicles.

(a) For taxable years ending on or after December 31, 2006 and on or before December 30, 2011, each taxpayer is entitled to a credit against the tax imposed under subsection (a) and (b) of Section 201 in an amount equal to 5% of the cost of motor fuel purchased in the State by the taxpayer during the taxable year for the operation of a commercial vehicle that has 2 or more axles.

(b) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(c) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

Section 99. Effective date. This Act takes effect upon becoming law.